ROSEAU: Dominica’s raising of EC$20 million (one EC dollar=US$0.37 cents) on the Regional Government Securities Market (RGSM) last week has been lauded by Prime Minister Roosevelt Skerrit, saying it represents confidence in the policies of his administration.
The money was raised at a record low 1.999 per cent through the first of a series of three 91-day Treasury Bill offerings.
“Many countries in the developed world especially in Europe have had difficulty in raising monies at concessionary rates,” said Skerrit, who is also finance minister.
“The discount rate achieved in last week’s Treasury bill offering means that government can now raise the financing it needs at a lower cost to the taxpayers of Dominica.”
Skerrit said his administration has had to grapple with Dominica’s own challenges “but we have worked actively to build a strong platform for sustained economic growth.
“Our prudent fiscal and economic policies have insulated the country from the more severe effects of the global recession,” he said.
A government statement said that the rate of 1.999 per cent is 50 basis points below the previous record of 2.49 per cent.
“Investors view the purchase of the 91 day Treasury bill as a low-risk investment opportunity. The low Treasury bill rate demonstrated the ability of the Government of Dominica to raise money at relatively low cost,” the statement said.
It said that as a result, the government will seek to raise an additional EC$65 million on the RGSM through the remaining two 91-day Treasury bills and one five year, EC$25 million bond.
“This is to finance part of government’s operating budget and refinance existing government debt, the interest rate of which is much higher than the interest rate government obtains on its Treasury bills. Treasury Bills present an avenue to invest outside of the normal banking system,” the statement added.